Cracchiolo, Inc., manufactures and sells two products: Product H2 and Product A8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct H2200 7.0 1,400 Product A8800 8.0 6,400 Total direct labor-hours 7,800 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $145.80 for Product H2 and $261.90 for Product A8.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product H2Product
A8TotalLabor-relatedDLHs$83,148 1,4006,4007,800Production ordersorders 18,970 400300700Order sizeMHs 817,191 5,0005,10010,100 $919,309 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product A8 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $85.28 per unit
B. $942.88 per unit
C. $216.80 per unit
D. $647.28 per unit
Answer: B
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